Woolwich / Barclays Base Rate

rothers

Hi, there seems to have been a lot of confusion over what the BBBR is.

Attached to my mortgage offer when I took is out was a sheet named "Supplementary Mortgage Conditions".

Point 9 of there conditions states "Interest on tracker rate mortgages is charged at a set margin above or below or equal to the Bank of England base rate. Interest rate changes on existing tracker rate mortgages take effect from the first of the month following a change to the Bank of England base rate. All references to the Barclays Bank Base Rate in your Offer document (where the reference is to "Barclays Bank PLC's Base Rate") and KeyFacts Illustration document (where the reference is to "our Base Rate") should be taken to be references to the Bank of England Base Rate.

Surely this is as nailed on as you can get, they cannot wriggle out of that???

I am on BBBR + 0.17% and do not want to lose it!!

Any opinions???

foreversummer

I am quite sure they cannot riggle out of that one, you must surely by OK.

The critical point is when did you take out your mortgage? It appears that at some point they stopped referring to the BoE rate in there terms and conditions, mortgage offer, kfi etc.

It is those people who may have cause for concern although Woolwich/Barclays have said that they have no plans for the BBBR not to follow the BoE rate.

Foreversummer

rothers

Thanks for your reply. I took the mortgage out in June 2008 although I first applied for it in Nov 2007. If the condition quoted above is attached to my offer they would not be able to change it now.........would they???

oidhche

I had a conversation with the Woolwich on Friday when the further 1% cut to the base rate was announced. Although they aren't automatically passing on the cut to customers on tracker mortgages, such as myself, they will change it if people phone up and ask them to. I have cut my monthly repayment by £170 by doing this, so I would urge anyone on a tracker with Barclays or Woolwich to phone them up and ask them to cut their interest rate.

Hope this helps

rothers

I think that they mean that they will alter your payments if you call them rather than pass on the 1% cut.

foreversummer

I think that makes you pretty bullet-proof (you will surely have to continue to track the BoE rate).

I took my mortgage out with them in October 2008, but received my offer in July 2008. I have a page headed "Supplementary Mortgage Conditions" but it does not include the clause you have. Nowhere in my offer does it mention the BBBR following the BofE rate. So not so sure about me.

Foreversummer

foreversummer

Yes you are right Rothers, the rate cut is passed on on the first of the month following the change, it is just the monthly payment that does not change - it is recalculated each September (repayment customers only).

Anyone that does not phone will not lose out over the whole term of the mortgage.

Foreversummer

Rikki

oidhche wrote: »

I had a conversation with the Woolwich on Friday when the further 1% cut to the base rate was announced. Although they aren't automatically passing on the cut to customers on tracker mortgages, such as myself, they will change it if people phone up and ask them to. I have cut my monthly repayment by £170 by doing this, so I would urge anyone on a tracker with Barclays or Woolwich to phone them up and ask them to cut their interest rate.

Hope this helps

This is for the woolwich repayment tracker mortgages which normally adjust once a year.

Interest only and part and part woolwich tracker mortgages are adjusted on the 1st of the following month

It is explained in the booklet sent out with your yearly mortgage statement.

rothers

Thanks foreversummer. They have passed on the 1% cut, hopefully they will continue to pass on further cuts. It would be bad press for them if they didn't, especially as HBOS have ignored their collar!

foreversummer

Hey, just found this on the Woolwich Intermediaries website:

http://woolwich.metafaq.com/templates/woolwich/main/resultsPage

When you get there just click on it to get the answer.

No wonder my broker reassured me that the BBBR would not change. If it did, that would just about be every broker who has arranged a Woolwich Tracker mortgage pretty p***ed off!

Foreversummer

foreversummer

Sorry don't understand why link does not bring up the question.

Just type "Bank of England Base Rate" into the question box and await the answer.

Foreversummer